For the best case scenario, assume a WACC of 6.5%, cash inflows of $2.1 billion at the end of 2nd year and cash outflows of $400 million at the end of 1st year and $500 million at the end of second year. For the worst case scenarios, assume a WACC of 9%, cash inflows of $1.2 billion at the end of 4th year and cash outflows of $200 million at the end of each year for 4 years.
For the best case scenario, the net present value is $1,035 million while for the worst case scenario, the net present value is $202 million.
From this scenario analysis, we find that the net present value of the project is expected to be between $202 million and $1,035 million with the most likely figure to be $814.5 million.